Crypto exchange BitMEX is looking into unusual Bitcoin trading patterns on its platform that could involve unfair practices.
The internal investigation follows a recent rapid drop in Bitcoin’s value on the platform. On Monday, Bitcoin’s valuation against the USDT stablecoin plummeted to $8,900 on BitMEX, while BTC maintained a value above $66,000 on other trading platforms. Bitcoin’s price on BitMEX quickly returned to normal and has since mirrored the broader market trends.
Following an investigation, BitMEX identified unusual “aggressive selling behavior from a few accounts,” which deviated from normal market expectations. The exchange assured that its operations were not disrupted and that users’ assets remained secure.
“Bitcoin down to $8,900 on BitMEX?” Well, not quite the whole picture.
Yes, we are investigating potential misconduct by traders on our Bitcoin-USDT Spot market (👀Did you even know we offer Spot trading?)
However, this incident had NO impact on our billion-dollar derivatives… pic.twitter.com/qWXXnyQxjw
— BitMEX (@BitMEX) March 19, 2024
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BitMEX clarified it does not use its market makers. The exchange noted that the large and rapid sell orders were too overwhelming for the market makers and traders on the platform to manage effectively. Bitcoin’s rapid drop did not affect BitMEX’s derivatives trading and didn’t lead to any forced sell-offs. The exchange also stated that it processes deposits and withdrawals as usual, with transactions typically completed in minutes.
A user with the handle @syq on X first highlighted the unexpected market movement, noting that it coincided with a 977 Bitcoin sale valued at approximately $66 million. Some BitMEX users claimed that the exchange had suspended withdrawals. However, the exchange clarified that it is only for accounts under investigation.
not sure why @BitMEX called my thread “clickbait” while all they did was say “btw this happened on spot, you know our main market is perps??”. i think you guys need to hire a better marketing guy https://t.co/ReWa7sBaSc
— syq (@syq) March 19, 2024
On a related note, Bitcoin’s value dropped by up to 7.3% to $62,458 on Tuesday following a significant outflow from the Grayscale Bitcoin Trust (GBTC), amounting to its largest since transitioning to an ETF on Jan. 11, totaling $643 million.
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